Chargeback Managment
Chargeback prevention is your best strategy for keeping your merchant account up and processing. Banks and consumers are actively engaged in protecting themselves from fraud, lost business, and lost revenue. Merchants have the responsibility to take action to protect themselves. Merchants need to adopt deliberate and proactive measures to combat Chargebacks. Chargeback Guardian is a Merchant's most powerful ally in Preventing Chargebacks.
Preventing Chargebacks
"An ounce of prevention is better than a pound of cure!"
While Chargeback prevention is a Merchant's first, and most important, line of defense against credit card processing catastrophe, regulations designed to protect customers can make this effort extremely difficult.
When customers contact their bank to dispute an e-commerce or CNP (card not present) charge, the card issuing banks have two basic options; issue a Chargeback Advice, or a Retrieval Request.
- Chargeback Advice - Notification from the issuing bank that says "We have reversed the transaction and taken the money back from your bank account. Now tell us why we shouldn't have." Generally this is the dispute notification sent to CNP Merchants.
- Retrieval Request - Notification from the issuing bank saying "This customer is disputing a charge. Please send us documentation so we can evaluate the legitimacy of the charge." Normally retrieval requests are issued to Retail merchants, not CNP Merchants.
Processing regulations state that for a CNP transaction, a Chargeback Advice may be issued, instead of a Retrieval Request. Once a Chargeback Advice has been issued and posted to a merchant's processing account, the damage is done. Even if the Merchant later wins the Chargeback, the Chargeback fee has already been assessed, and the Chargeback counts against the merchant's overall monthly Chargeback threshold. (Note: Processor's may flag an account as risky, even if they haven't entirely breached these thresholds.)
Maintaining an acceptable Chargeback rating under these guidelines can be difficult, when considering how easy it is for customers to Chargeback. Fortunately, there is hope. Chargeback Guardian has implemented cutting edge tools that are proactive, dynamic and flexible.
Fighting Chargebacks
Although a Chargeback cannot be removed once it has been posted to a merchant account, it is still important for Merchants to respond to most Chargebacks. While there may not be immediate or complete financial restitution afforded to the merchant, these efforts remain an important indicator to merchant account sponsoring banks.
A Merchant's commitment to responding to Chargebacks shows their sponsoring bank that they believe they are:
- Running a legitimate business and believe in their product or service.
- Believe they are due the revenue lost from the disputed transaction.
Chargeback Guardian utilizes a highly technical system designed to streamline the appeals process.
While there are other companies and products on the market to assist merchants with Chargeback disputes, Chargeback Guardian remains committed to providing proactive solutions, with ongoing data analytics. These smart solutions consider the merchant's "big picture" and provide insight into general risk management strategies.
Chargeback Guardian's appeals system is unique in that it addresses and reduces fundamental causes associated with Chargebacks, rather than focusing solely on damage control.
Chargeback Management Services
Chargeback Guardian provides a streamlined system that helps you understand where the Chargebacks are coming from and identify what steps need to be taken to reduce or eliminate them.
Full Chargeback ManagementOur staff is fully trained to respond to all Processors and all Chargeback reason codes. With this individualized attention, we recover more money. You may already have a Chargeback group that responds to your Chargebacks but is not as successful as you would like. We can train them and manage your group in order to dramatically improve their results. Chargeback Guardian's Chargeback Management System includes:
| TrainingWe will create trainings for your Customer Service Department and New Hires that will significantly improve your customer's satisfaction, increase retention, and reduce Chargebacks. We have conducted trainings locally and half way around the world and the results are astonishing. Most people have heard of a Chargeback, but do not understand the actual ramifications. We focus on why consumers Chargeback, why banks allow consumers to Chargeback, and how to improve your relationship with the banks in order to reduce Chargebacks. Retrieval Request and Chargeback ResponsesEach notice requires a response and each reason code requires specific information in order to recover the potential loss of funds. We have worked for the Bank making the decisions to approve or decline a Chargeback, so we know exactly what information needs to be provided in order to sway the decision in your favor. We create a customized response to all notices and reply within each Processors required timeframes. Better Business Bureau and Attorney General ComplaintsHaving a bad rating at the Better Business Bureau can cause loss of business and a lot of negative attention. Attorney General Complaints are difficult to respond to. We know how to turn these responses into an opportunity to let your company shine rather than hide from them. |
Consulting
Many Chargebacks are caused unknowingly by the Customer Services Representatives who are trying to assist their clients. By monitoring calls and reviewing Customer Service procedures we are able to create an action plan to reduce Chargebacks by making small pain free changes that have a big impact.
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